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Houston and Smith Corp. is considering opening a new division to produce units that it expects to sell at a price of $12,451] each in the first year of the project. The company expects the oost of producing each unit to be $5,2{JD in the first year; ho'lnreyerr it expects the selling price and oost per unit to increase by 4% each year. Based on the preoeding informationr the oompany expects the selling prioe in the fourth year of the project to be , and it expects the oost per unit in the fourth year of the project to be which of the following statements about ination's effect on net present value {NW} is correct? 0 When the selling prioe and cost per unit are expected to increase at the same rater you do not need to take ination into account when performing a capital budgeting analysis. 0 when the selling prioe and cost per unit are expected to increase at the same rater forgetting to take ination into account in a capital budgeting analysis will typically cause the estimated NW to be lower than the true NF'U